Macro Economics Domestic Products Rate

Question: Describe about the Macro Economics for Domestic Products Rate. Answer: Source: GDP growth (annual %) | Data. (2016).Data.worldbank.org. Retrieved 22 November 2016 Summary: The GDP rate of Japan: As per the above article it can be mentioned that Macroeconomics is a section of Economics, where global, national or the regional economies can be illustrated. Some of the important economic factors are such as gross domestic product, inflation rate and unemployment rate of a country, governmental expenditure, fiscal and monetary policy, which will be discussed in this study. Year 2010 2011 2012 2013 2014 2015 GDP rate 4.35% 3.11% 2.46% 2.39% 2.612% 2.46% Table 1: Rate of GDP of Japan from 2010 to 2015 (Source: Data.worldbank.org) From the above table it can be observed that the GDP rate of Japan has been decreasing with the rise in time. It can be mentioned that in the year of 2009, country's GDP was negative and the rate was (-1.72%). After that the rate was increased in the year of 2010. Harding Wells (2016) argued that this rate of GDP is constant from the year of 2011 to 2015. Analysis: As per the statement of the article, it can be mentioned that lower GDP of a country has an adverse impact on the consumers, business and the investors. As per the statement of Nohara Miller (2016), with the lower GDP rate, the national income of the country will be decreased. Hence, it can be mentioned that overall consumption of the country has decreased. As a result, it can be mentioned that per capita income will be decreased. The standard of living of the country will also decrease. Purchasing power parity will also be decreased. Aggregate savings and aggregate output of Japan will be declined. On the other hand, it can be stated that stock market indices of Japan and the exchange rate of the country will also fall. With the fall in the GDP rate of the country, the rate of inflation will also decrease. Sato (2016) added that presently, Japan has been suffering from the deflationary situation. Furthermore, it can be demonstrated that overall investment expenditure of the mention ed will be hampered if the rate of GDP will decrease. In addition, it can be added that with the decrease in GDP rate, the production level of the country will be decreased, which in turn refers that the rate of unemployment will be decreased. Topic 3. Source: Unemployment, total (% of total labor force) (modeled ILO estimate) | Data. (2016).Data.worldbank.org. Retrieved 22 November 2016, from https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=JP Summary: According to the above article, in order to discuss the unemployment rate of Japan, it can be stated that the relationship between the GDP growth rate and the unemployment rate can be illustrated with the help of Okun's law. There is a negative relationship between the GDP rate and the unemployment rate of a country (mainichi.jp (2016). Nevertheless, it can be stated that Japan's unemployment rate has been decreasing with the rise in time. In this connection, it can be inferred that as the rate of GDP has increased from the year of 2009 to 2010, therefore, the country is trying to reduce the unemployment rate (Data.worldbank.org.). Analysis: In this section, it can be inferred that the country's GDP rate will be increased. The employment rate of the country will be increased. Moreover, the wages of the employees will be increased Nohara Miller (2016). Moreover, the rate of inflation of Japan will also increase. The relationship between the unemployment rate and the rate of inflation can be discussed with the help of the Phillips curve. As per the Phillips curve, it can be mentioned that there is a negative relationship between the inflation rate and the unemployment rate. As a result, it can be inferred that the price level and the money supply of the country will be increased. The standard of living of Japan will be improved (Data.worldbank.org). As the rate of unemployment of Japan has been decreasing, therefore, it can be concluded that the production level of Japan has increased. After the year of 2012, the rate of GDP has not decreased massively. AS per the Okun's law, it can be inferred that with the rise in rate of GDP, the rate of employment will be increased. However, it can be criticized that country's GDP rate will be decreased if the rate of unemployment of Japan will go above the natural rate. References GDP growth (annual %) | Data. (2016).Data.worldbank.org. Retrieved 22 November 2016, from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=JP Harding, :. Wells, P. (2016). Japan GDP growth rate jumps to 1.7%. Ft.com. Retrieved 20 November 2016, from https://www.ft.com/content/866509c8-1c8e-11e6-a7bc-ee846770ec15 mainichi.jp (2016). Japan's average minimum wage set at 823 yen per hour, biggest rise since 2002 - The Mainichi. The Mainichi. Retrieved 20 November 2016, from https://mainichi.jp/english/articles/20160824/p2a/00m/0na/021000c Nohara, Y. Miller, B. (2016). IMF sees Japanese talent locked in low-paying jobs | The Japan Times. The Japan Times. Retrieved 20 November 2016, from https://www.japantimes.co.jp/news/2016/09/29/business/imf-sees-japanese-talent-locked-low-paying-jobs/#.WDHMJdV97IV Sato, T. (2016). Global Financial Crisis: Japans Experience and Policy Response. frbsf.org. Retrieved 20 November 2016, from https://www.frbsf.org/economic-research/files/Panel_Sato.pdf Unemployment, total (% of total labor force) (modeled ILO estimate) | Data. (2016).Data.worldbank.org. Retrieved 22 November 2016, from https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=JP